Subsidy up to Rs 25 lakh available for breed improvement of poultry in rural areas

The scheme aims to bring rural poultry farming into organised sector

To augment incomes and create self-employment opportunities by making the rural poultry sector organised, the Indian government’s National Livestock Mission (NLM) is running a scheme for breed improvement of poultry. Under its Sub-Mission on Breed Development of Livestock and Poultry, the NLM is giving a subsidy up to 50% of the capital cost (limited to Rs 25 lakh) to entrepreneurs for breed improvement of poultry in rural areas.

The scheme was implemented across India in the 2021-22 financial year. The scheme is being implemented through the state implementing agency of the state animal husbandry department and Indian government’s department of animal husbandry and dairying (DAHD).



  • Bringing unorganised rural poultry farming into the organised sector.
  • Promotion of entrepreneurship in the field of rural poultry in a sustainable manner.
  • Establishment of forward and backward linkages.
  • Popularising the different alternative non-conventional low-cost feeding.



  • The entrepreneurship is developed by inviting individuals, self-help group (SHGs)/farmer producer organisations (FPO)/farmer cooperative organisations (FCOs)/joint liability groups (JLGs) and Section 8 companies for establishment of parent farm, rural hatchery, brooder-cum-mother unit for production of hatching eggs and chicks and rearing of the chicks up to four weeks in the mother unit. Emphasis is given on those entrepreneurs who are able to establish forward and backward linkage (hub and spoke).
  • The central government provides 50% capital subsidy for the cost of the project for establishment of parent farm, rural hatchery and mother unit with a minimum 1,000 parent layers.
  • The entrepreneurs/eligible entities need to arrange the remaining amount through bank loan or from the financial institution or self-financing.
  • The birds maintained in the parent farm are low input technology Birds or such birds which are sustained at the free-range management system.
  • The Central Poultry Development Organisation, Central Avian Research Institute, Directorate of Poultry Research, state veterinary universities and other private organizations with certificates of guaranteed production are eligible to supply birds to the entrepreneurs.



  • A total of 50% capital subsidy (limited to Rs 25 lakh) in two instalments. The subsidy is provided in two equal instalments.
  • The first instalment is released upfront to the scheduled bank or financial institutions like the National Cooperative Development Corporation (NCDC) by the Small Industries Development Bank of India (SIDBI) to be credited to the entrepreneur/eligible entities’ account after the bank or financial institution releases first instalment of loan to the beneficiary and its confirmation by state implementing agency (SIA). Beneficiaries will be eligible for release of the second instalment by the SIDBI after completion of the project and certification by the SIA.
  • In case of the self-financing project, the project needs to be appraised by the bank where the entrepreneurs/eligible entity have an account. The first instalment of 50% subsidy is provided into the lending bank by the SIDBI where the beneficiary has an account.
  • The subsidy is released only when the beneficiary has made an expenditure of 25% cost for the project towards infrastructure and has been verified by the SIA. Remaining amount of 50% subsidy will be provided by the SIDBI after completion of the project and verification by the SIA.
  • The entrepreneurs/eligible entities, interested in taking benefit under the entrepreneurship project in self-financing mode, need to provide bank guarantee from the scheduled bank valid for three years for the remaining cost of the project beyond the subsidy. This bank guarantee is provided in the name of the Indian government’s department of animal husbandry and dairying (DAHD).
  • The original bank guarantee is to be kept in the safe custody of the SIA. Also, a copy of the bank guarantee and a declaration form need to be uploaded in the online portal at the submission of the application or to be attached with the application.
  • No subsidy is provided for working capital, personal vehicle, purchase of land, cost for rent and lease of land.



Individuals, farmer producer organisations (FPOs), farmer cooperative organisations (FCOs), joint liability groups (JLGs), self-help groups (SHGs) and Section 8 companies.



The SIA will follow up the project for a period of two years after completion with regards to its operation.

Complete details about the scheme are available on website

To read in Punjabi and Hindi, click below.

ਪੇਂਡੂ ਮੁਰਗੀ ਪਾਲਣ ਸਕੀਮ

ग्रामीण मुर्गी पालन योजना


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